Splunk (NASDAQ: SPLK) is one of 112 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Splunk to related companies based on the strength of its valuation, institutional ownership, risk, analyst recommendations, profitability, earnings and dividends.

Insider & Institutional Ownership

57.0% of shares of all “Software” companies are held by institutional investors. 1.4% of Splunk shares are held by company insiders. Comparatively, 19.1% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Splunk and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Splunk -36.81% -75.81% -35.89%
Splunk Competitors -47.01% -27.85% -9.76%

Valuation and Earnings

This table compares Splunk and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Splunk $949.96 million -$355.18 million -31.79
Splunk Competitors $2.23 billion $415.57 million 321.40

Splunk’s competitors have higher revenue and earnings than Splunk. Splunk is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Splunk has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Splunk’s competitors have a beta of 0.87, suggesting that their average stock price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Splunk and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Splunk 0 8 29 0 2.78
Splunk Competitors 284 2089 4444 86 2.63

Splunk currently has a consensus target price of $81.15, suggesting a potential downside of 0.68%. As a group, “Software” companies have a potential upside of 4.00%. Given Splunk’s competitors higher possible upside, analysts clearly believe Splunk has less favorable growth aspects than its competitors.

Summary

Splunk competitors beat Splunk on 8 of the 12 factors compared.

Splunk Company Profile

Splunk Inc. (Splunk) is engaged in the development and marketing of software solutions. The Company’s offerings enable users to collect, index, search, explore, monitor and analyze data. Its offerings address diverse data sets that are referred to as big data and are specifically used for machine data. Machine data is produced by various software application and electronic devices in an organization and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Its products help users in various roles, including information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility into and intelligence about their organization’s operations. In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats. The Company offers Splunk Enterprise, which is a machine data platform.

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